Judge Excoriates Trump in Open Court for Fed Claim

Summary

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Legal AF by MeidasTouch

Episode: Judge Excoriates Trump in Open Court for Fed Claim

Date: January 1, 2026
Host: Michael Popok (MeidasTouch Network)

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Overview

In this episode of Legal AF, host Michael Popok dives deep into a major federal court order rebuking the Trump administration for its attempt to defund the Consumer Financial Protection Bureau (CFPB) by claiming the Federal Reserve is "busted" and cannot provide the mandated funding. The episode explains the background, the Trump administration's strategies, and the stern response from Judge Amy Berman Jackson. Popok emphasizes the broader context of the Trump team’s efforts to undermine regulatory agencies and the legal pushback keeping critical consumer protections intact.

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Key Discussion Points & Insights

1. Background: The Attack on the CFPB

• Historical context: Since its creation by President Obama, the CFPB has been a top target for MAGA and the Trump administration, along with Obamacare ([03:00]).
• Why CFPB matters: Popok frames it as the last major firewall preventing abuse in consumer finance, with other regulatory agencies already weakened through Trump-era defunding and deregulatory efforts.

2. Judge Amy Berman Jackson’s Order

• Immediate trigger: The Trump administration claimed it could not continue funding the CFPB due to the Federal Reserve’s alleged lack of “earnings”—essentially stating the Fed was out of money ([02:28]).
• Judicial context: Judge Jackson had issued an injunction preventing any move to dismantle or defund the CFPB while its fate was still on appeal.

3. The Manufactured Crisis

• Russ Vought’s role: As head of OMB and key architect of Trump’s Project 2025, Vought is highlighted as the central figure orchestrating funding sabotage. Popok frequently refers to him as "Darth Vader," echoing Trump’s own playful-yet-serious introduction ([07:30-08:52]).
  • Notable quote – Donald Trump introducing Russ Vought:
    "They call him Darth Vader. I call him a fine man, but he's cutting Democrat priorities and they're never going to get him back." ([08:18])
• Media tactics: Right-wing podcasts amplified the narrative that defunding the CFPB was both imminent and desirable ([08:52]).

4. Judge’s Rebuttal & Ruling

• Key evidence: Judge Jackson inserts direct transcripts from right-wing podcasts and Trump's own public statements to show intent ([09:00-09:33]).
• Re: Legal strategy:
  • The administration’s claim hinged on a memo from the Trump DOJ’s Office of Legal Counsel redefining the Federal Reserve’s "profitability" and thus its funding obligations ([10:50]).
  • Judge Jackson relies on a brief from former Federal Reserve officials debunking the DOJ’s analysis:
    "The Fed never truly operates at a loss." ([11:20])
• Ruling summary:
  • The court finds the supposed funding shortfall is “manufactured” to evade compliance ([13:15]).
  • Rejects the administration’s legal arguments as “an unsupported and transparent attempt to starve the Bureau of Funding and yet another attempt to achieve the very end the court's injunction was put in place to prevent.”
    • Notable quote – Judge Jackson:
      “The only new circumstance is the administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” ([14:40])
  • Clarifies that refusal to request funds constitutes a violation of her injunction.

5. The Trump Playbook: Delay, Obfuscate, Undermine

• Judges repeatedly forced to clarify orders due to Trump DOJ’s willful misreadings and delay tactics ([15:30]).
• Popok:
  “It's into the multiple dozens. How many times judges are forced to re, clarify, reissue, reconsider their orders for this Trump administration … They act like they can't read. They act like they don't understand plain English.” ([15:45])

6. Broader Impact & Reflections

• Government shrinkage myths: Trump’s cuts to federal workforce haven't reduced spending—in fact, Popok says spending is up 7% under Trump despite the chaos ([16:35]).
• Importance of legal guardrails: The courts remain essential in preserving agencies (like the CFPB) during periods of political targeting ([18:00]).

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Notable Quotes & Memorable Moments

• Popok on the absurdity of the Fed's ‘bankruptcy’ claim:
  “Pull out its pockets and say we'd love to comply, your honor, but the Fed doesn't have the money to pay for the agency as Congress has required. What are we to do?” ([02:28])
• Judge Amy Berman Jackson (quoted by Popok):
  "This ‘manufactured’ [funding crisis] is not a valid justification for the agency's unilateral decision to abandon its obligations under the injunction.” ([13:15])
• On repeated judicial clarifications:
  “Judges have to clarify a lot with this administration ... buying more time for the Trump administration, wasting more time, wasting more dollars.” ([15:45])
• Popok’s overview of the Trump move:
  “The administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” ([14:40])
• Russ Vought’s ‘Darth Vader’ status:
  "Don't be misled by his bookish librarian demeanor—you know, he is Darth Vader. That's what Donald Trump has even called him." ([07:10])

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Important Segments & Timestamps

• [02:28] — Introduction to Judge Jackson’s latest order and summary of the case against the Trump administration.
• [03:00] — Background on CFPB and Trump's campaign to dismantle Obama-era regulatory protections.
• [07:30-08:18] — Discussion of Russ Vought, “Darth Vader” analogy, and his central role in Project 2025 and agency defunding.
• [09:00-09:33] — Right-wing media and administration statements about defunding the CFPB, with Judge Jackson quoting these statements in her order.
• [10:50-11:20] — The dubious DOJ memo and the counter from former Federal Reserve officials.
• [13:15] — Judge Jackson’s key findings: rejecting the funding excuse and reaffirming her injunction.
• [14:40] — The court’s frustration with repeated attempts to sidestep judicial oversight.
• [15:45-16:35] — On delay tactics and the paradox of increased federal spending under Trump.

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Tone and Language

• The episode preserves Popok’s mix of legal acumen and direct, often wry commentary. He reliably attributes direct quotes and injects quips (“Darth Vader”, “the lights are on, nobody’s home”).
• The legal explanations are accessible, drawing connections between administrative maneuvers and their real-world impact on consumers.

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Conclusion

This episode illustrates both the technical legal arguing and broader stakes at play as the Trump administration attempts to hollow out consumer protections. Judge Amy Berman Jackson’s forceful order highlights judicial vigilance in the face of executive overreach and manufactured crises. Popok’s analysis deciphers complex maneuvers for listeners, reinforcing the importance of both legal guardrails and informed advocacy.

“The only new circumstance is the administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” — Judge Amy Berman Jackson ([14:40])

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Transcript

[Michael Popak]

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[Michael Popak]

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[Michael Popak]

So funny thing, it turns out you can't tell a federal judge that the reason you're not complying with her injunction to avoid destroying a federal agency that protects the consumers while an appeal is going on. You can't tell her that the reason you're not complying with the injunction is that the Federal Reserve is busted, that it has no money. Pull out its pockets and say we'd love to comply, your honor, but the Fed doesn't have the money to pay for the agency as Congress has required. What are we to do? And the judge says no. I've seen your statements on right Wing podcast. In fact, Amy Berman Jackson, the judge put one of the statements of Russ Vogt, the head of the Office of Management and Budget on a right wing podcast on the Charlie Kirk Network at the top of her order when she said your manufactured attempt to, to choke off the funds to the Consumer Financial Protection Bureau, you know, the one created by President Barack Obama to stop predatory lending and credit practices, credit cards and payday loans and, and banks and all those and collection agencies. You know, you need somebody in your corner and it's the cfpb. You can't put it out of its misery or out of our misery and take it in the shoot it while there's an appeal going on and avoid my March injunction to prevent exactly that. You're on the Midas Touch Network. Happy early New Year's. It's cold where I live today and so I'm, I'm in a sweater. Let me bring it to you. For those that are are listening, let me bring you this new we got a brand new order that just came out yesterday from Judge Amy Berman Jackson, one of our faves here on, on Midas Touch and Legal af. She sits in the District of Columbia District Court. And I've got the new order. I'm posting it. It's 32 pages. I'll give you the, I'll give you the heart of it. I'm posting it over on Legal AF substack for paid members. I'm running a sale, everybody 30% off through the first of the year on paid memberships of Legal AF substack. And thank you for getting us to number one in rising US politics substacks. Okay, let's get to Amy Berman Jackson. We've been talking about the attempt, well, the, the efforts by the Trump administration and really all MAGA to get rid of the Consumer Financial Protection Bureau. There's Two entities that have driven MAGA and Donald Trump crazy since his first term and has been a thorn in their side, Obamacare and the Consumer Financial Protection Bureau. Mainly because of Obama and because it's the only agency that's out there protecting the consumer as Donald Trump weakens all the other protective regulatory schemes and agencies basically putting out to pasture by defunding the securities and Exchange Commission about the stock market and that particular financial services marketplace, the cftc, the ftc, the. They've all seen their budgets shrunk by a half or a third. They're not doing enforcement actions. They're not going after issuers, they're not going after corporations any longer because they're all friends with Donald Trump. They're not going after cryptocurrency and regulating that. The last firewall to protect America, the Consumer Financial Protection Bureau. And Donald Trump wants to take it out in the back and shoot it. Now, back in March, Judge Jackson stopped it. She said, look, guys are doing this on appeal. And the appeal is, at the heart of the appeal is whether the president and the executive branch and the unitary presidential model can destroy completely and defund completely a congressionally created agency or bureau. All right, you guys work it out on appeal. In the meantime, I'm going to protect it from being defunded. I'm going to protect it from being destroyed so that there's something, if you lose on the Trump side, there's something here left behind because if I allow you to defund it and destroy it and fire everybody through doge and otherwise, there's nothing left to save. Makes sense. Except the Trump administration has been squirming about that ever since. And several trips to the appellate courts have resulted, though, in an injunction that stops the destruction of the CFPB and requires its continued funding. See, that's the way Donald Trump has reshaped the relationship. That's a nice way of putting it. Reshaped the relationship between the American people and the federal government and destroyed the social safety net through funding, through defunding, through firing employees. When you get rid of, when you get rid of 10% of the federal workforce, who do you think is picking up the phone at the Social Security Administration? Who do you think is generating the statistics that are needed to run the economy? Nobody. Nobody's home. The lights are on. Nobody's home. And Russ Vogt, remember that name? Who's effectively the domestic policy president of the United States, the architect of 2025. Don't be, don't be misled by his, his Bookish librarian demeanor. You know, he is Darth Vader. That's what Donald Trump has even called him. He runs the Office of Management and Budget. He's the architect of Project 2025, which he celebrates, you know, and he holds the pen and the checkbook. The executive branch can't execute on the laws unless Russ Vote writes the check to do it. And that's how they choke off and starve the American people through Russ Vote, right? Why do you think he's called Darth Vader? Here's Donald Trump calling Russ Vote Donald and introducing him as Darth Vader. Let's play it.

[Donald Trump]

And I will say this, that we have Darth Vader. You know Darth Vader, right? Darth Vader is a man who I think he's sitting right. Is that Darth? Stand up, please. Darth Vader, stand up. Does everybody know this is. They call him Darth Vader. I call him a fine man, but he's cutting Democrat priorities and they're never going to get him back. And they've caused us and they've really allowed us to do it. And by the way, thank you. You're doing a great job, I have to tell you. So really a great show.

[Michael Popak]

So Amy Berman Jackson has a Darth Vader problem. And Darth Vader Russ Vogt goes on right wing podcasts in October and says in response to a question about the CFPB the following. So we want to put the CFPB out, out of business and we will be successfully probably within the next two or three months. How do I know that's the quote? Because Amy Berman Jackson put it on page one above her order. Now, Donald Trump has also said he wants to get rid of the cfpb. And we've got a clip of that as well. And Amy Berman Jackson saw it also. Let's play it.

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Protesters are calling on the Trump administration to change course and reopen the Consumer Financial Protection Bureau. CFPB workers were told to stay home yesterday and it's DC headquarters is shut down. CFPB was founded in 2011 after the great Recession, and the agency aims to protect Americans from financial fraud, abuse and unfair practices. Critics say shutting it down is an attempt to loosen financial regulations. The CFPB is there to make sure that Elon's new project can't scam you or steal your sensitive personal data.

[Donald Trump]

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Make the switch to Sundays Go right now to sundaysfordogs.com legalayah and get 40% off your first order. Or or you can use code legal af at checkout. That's 40% off your first order at sundaysfordogs.com legal af sundaysfordogs.com legalaf or use code LEGALAF at checkout. So now they decide they're gonna starve the CFPB of cash. And they're gonna do it by saying that the Federal Reserve, which is the funding source that Congress set up for for this Bureau, doesn't have the money. It's broke, it's busted, by the way that they define earnings, a defined term concerning the balance sheet. Now she also remarks in her footnote four on page five and relies on a brief that was supplied to her by former officials of the Federal Reserve. Now, the whole thing stems to a two or three page memo created out of whole cloth by the Trump Department of Justice, which we know has been captured by Donald Trump. So it's not independent. Its Office of Legal Counsel really been captured, really not independent who defined the Fed's profitability and concluded that there isn't enough money to pay the funding for the for the Bureau. Here's what she says in her footnote. An ABACUS brief submitted by former officials of the Federal Reserve contends that Office of Legal Counsel's analysis of the Fed's profitability is flawed because the Fed never truly operates at a loss. Here's what they tried to say on page three of her order. On November 10, the defendants filed what they styled as a notice of potential lapse in Appropriations to pay the expenses of the Bureau, which transmitted a copy of the November 7 memo issued by the Office of Legal Counsel, mainly Donald Trump at votes request. At this Russ votes request, the notice acknowledged that this court's injunction which restricts restricts the agency's conduct regarding employment, contracting and facilities remains in effect. So she's saying now I'm getting trolled. You're saying that my injunction that you can't fire people, you can't cancel contracts remain and you can't sell the building remains in effect, so you're going to defund underneath it, but that the Federal Reserve, this is over on page five, has no earnings, they're busted and cannot fund the cfpb and that they're. And that. And that the director has no statutory obligation to request funds when the Fed is not profitable. So the acting head of the cfpb, this consumer bureau, Russ Vote, purposely did not ask for the funding that the Fed had set aside for the Bureau in order to argue that there's no money and he needs to shut down operations that didn't go over well. Here's what the judge rules at the end of her order on page 31. This sums it up. The court clarifies that the claimed lapse in funding like you're out of money Fed has no money, which was manufactured her word by the defendants based solely on that legal memo I just read to you is not a valid justification for the agency's unilateral decision to abandon its obligations under the injunction. You're not getting out from under my injunction by a false claim that there's no money. The statutory text of the act, the statutory act governs and it and it prescribes a process through which that Bureau is to request the funding and it needs to carry out the mission assigned to it by Congress. And the Federal Reserve must provide that funding from its quote unquote combined earnings. And you can't make combined earnings disappear through a new version of what combined earnings are. To say that the Federal Reserve operates at a loss and every year from 2011 this has not been a problem. She said neither the statute, the injunction nor the Fed's willingness to pay has changed. She she writes. The judge writes the only new circumstance is the administration's determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals. It appears that defendants new understanding of combined earnings is an unsupported and transparent attempt to starve the Bureau of Funding and yet another attempt to achieve the very end. The court's injunction was put in place to prevent. Therefore, judges have to clarify a lot with this administration. Therefore, this ruling construes the scope of the existing order to clarify that the defendant's unilateral decision to decline the request, to decline to do request funding, not even put in the request, based on an unsupported interpretation of the law, contravenes the preliminary injunction. I can't tell you. It's into the multiple dozens. How many times judges are forced to re, clarify, reissue, reconsider their orders for this Trump administration and the Department of Justice. They act like they can't read. They act like they don't understand plain English. It forces judges to be like, I need to really redefine my order once again. Buying more time for the Trump administration. Wasting more time, you know, wasting more time and dollars. No wonder government spending is up 7% over Joe Biden's period. I thought they were trying to shrink the government. I thought the purpose of Doge and Donald Trump and cost cutting and all that was to cut spending. Why is spending up 7%? You know, he got rid of 10% of the federal workforce. But spending is up 7% under Donald Trump. Right? That's where we are right now. I'm glad you're here on the Midas Dutch network. Great news. Legal AF substack this week, actually today, number one and rising in US Politics of all substacks of substacks, US Politics were number one on, on the rising chart. That's all because of you. And in honor of that, I'm running a sale through the 1st of January all the way to midnight on the 1st of January. 30% off. Legal AF substack paid annual membership. I'm doing two lives a day there. Two live reports a day. I'm about to do one now. We're doing exclusive content for our paid members. And frankly, this is how independent journalists and commentators, this is how we pay the bills on substack. We're all on substack. Join us there. 30% off. Don't miss the sale. So until my next report, I'm Michael Popak. Can't get your fill of Legal af. Me neither. That's why we formed the Legal AF substack. Every time we mention something in a hot take, whether it's a court filing or a oral argument, come over to the substack. You'll find the court filing and the oral argument there, including a daily roundup that I do call called wait for it Morning af. What else? All the other contributors from Legal AO are there as well. We got some new reporting, we got interviews, we got ad free versions of the podcast and hot takes where Legal AF on Substack. Come over now to free subscribe.